New York is entering its second week of online sports betting. It happens to be the NFL Wild Card round.
How big will the handle be? How many advertisements will we see on television?
One thing is clear: New York Sportsbook continues to roll out massive bonus offers to entice new users to sign up.
Current photo of sports betting in New York
Currently, four mobile sports betting apps are available to bettors in New York: DraftKings, FanDuel, Caesars and Bet Rivers. Monday, BetMGM will enter the fray – in time to onboard customers ahead of the final NFL Wild Card game.
With the exception of BetRivers, betting apps offer aggressive offers to attract new bettors to New York.
A recent Sportico article pointed to massive customer acquisition spending despite New York’s 51% tax on sports betting revenue. In short, sports betting operators consider the size of the market and the brand value of being one of the best bookmakers in New York to be worth the price of entry, so to speak.
So what do these deals look like? Here are the 3 biggest this weekend.
Caesars $300 Free Bet + $3,000 Deposit
Caesars Sportsbook, through its spokesperson JB Smoove (Caesar!), garnered the most attention with its launch in New York by offering new players $300 free on sign-up along with a match of deposit of up to $3,000 – an industry high.
This is one of the strongest offers we’ve seen due to both the amount and the varied nature of the bonus money. You rarely see free bets over $100 or deposit matches over $1000. Caesars actually has 3X those amounts for online sports betting in New York.
The $300 free bet is distributed upon registration, allowing users to test the app. Their first deposit is matched up to $3,000. It should be noted that most bettors will not deposit this much and therefore Caesars is not responsible for the full amount on average.
DraftKings Sportsbook’s 56 to 1 Odds
DraftKings Sportsbook takes place 56 to 1 in any NFL playoff game or the Super Bowl for new users placing their first with DraftKings NY.
This is a special promotion for the NFL, but users will actually have a choice of standard DrafKings $1,050 premium or the 56 to 1 promo.
We prefer the latter for bettors new to New York as it allows for an easy way to integrate into the app. Simply place $5 on any NFL team for your first bet and earn $280 in site credits if they win.
It’s quite easy.
FanDuel Sportsbook $1,000 Risk Free Bet
FanDuel Sportsbook is probably the most bet app in New York in the first week. And as they unfold 30 to 1 on any game this week, we prefer their simpler $1,000 Risk Free Bet for New York bets.
It’s exactly what it sounds like: FanDuel will refund first bets in site credit if they lose – up to $1,000.
How can NY Betting justify massive sign-up bonuses?
Simple math would indicate that, combined with a 51% income tax rate, these promotions will take a long time to recover New York sportsbooks. But they play the long game. Never mind that most bettors do not do take advantage of the full sign-up bonus or withdraw money from the app, there are other ways for big betting apps to monetize customers.
Good grip @HowieLongShort this morning about US sports betting becoming much more than just betting.
great app pic.twitter.com/5HppForqlu
— Kyle Scott Laskowski (@KyleScottL) January 14, 2022
As Kyle’s Tweet indicates, DraftKings and FanDuel have ambitions to become more than just “sports betting apps” in New York. In fact, both already offer daily fantasy games. In states where it is legal, they both have an online casino. And DraftKings offers an NFT marketplace. Over time, these betting apps will become platforms or “sports wallets”. Thus, the customer value can turn out to be substantial – far greater than the bonus amounts distributed to new customers.